AquaBounty Technologies Provides Corporate Update and First Quarter 2020 Financial Results
May 05 2020 - 4:05PM
AquaBounty Technologies, Inc. (NASDAQ: AQB) (“AquaBounty” or the
“Company”), a land-based aquaculture company utilizing technology
to enhance productivity and sustainability, has provided a
corporate update and financial results for the first quarter ended
March 31, 2020.
Recent Company
Highlights:
- Harvest schedules remain on-track, with first harvest of
conventional Atlantic salmon scheduled to begin in June 2020, and
the first harvest of the Company’s proprietary AquAdvantage salmon
(AAS) scheduled to begin in the fourth quarter of 2020.
Currently, AquaBounty has over 300 metric tons of fish in the water
between its two farms located in Indiana and Rollo Bay.
- Implemented increased biosecurity and employee safety measures
in response to the COVID-19 pandemic.
- Appointed Theodore Fisher and Alana Czypinski to the board of
directors.
- Fortified balance sheet from an over-subscribed February 2020
public offering, securing $15.5 million in gross
proceeds.
- Planning for the next large-scale farm is in full development
pending the final selection of the engineering and Recirculating
Aquaculture System (RAS) technology firms.
- Retained MZ Group to lead strategic investor relations and
shareholder communication program across all key markets.
- Discussions with potential customers and distributors remain on
track with timing of harvests.
Management
Commentary
Sylvia Wulf, Chief Executive Officer of
AquaBounty, stated: “The COVID-19 pandemic is a significant
challenge for the global economy, and I am immensely proud of our
employees for their outstanding performance and unwavering care for
our fish. A challenge like this pandemic highlights the need
for technology and supply chain alternatives like ours, which
address a safe, sustainable, and secure food supply. Our
operational experience and expertise have helped us navigate
through this unique environment and effectively execute against our
strategy.”
“AquaBounty is rapidly approaching its
commercialization phase, and we are pleased to announce that our
first harvest of conventional Atlantic salmon remains on track to
begin in June 2020, which will provide our first revenues on a
commercial scale. This also allows us to continue
demonstrating our expertise in aquaculture and ensure our supply
chain is in place prior to our first harvest of AquAdvantage
salmon, beginning in the fourth quarter of 2020. Looking
forward, we plan to increase production volumes in subsequent
months. With a world-class team in place and a fortified
balance sheet from our over-subscribed $15.5 million public
offering, we are better positioned than ever to execute our
strategic plan,” continued Wulf.
Wulf added: “As we prepare for the future, we
continue to work through the process of formalizing offtake
agreements with processors and customers. We’re also taking
steps to plan the next large-scale production farm, including
identifying an ideal site location to maximize logistics and best
serve our customers, selecting a design and construction firm, and
choosing a RAS-technology provider.”
“We are confident in our ability to execute upon
the biggest milestones in the Company’s history, while concurrently
moving forward with our longer-term operating plans to increase
scale, drive technology enhancements, and expand geographically—all
while driving meaningful shareholder value and providing solutions
to feed the world’s growing population,” concluded Wulf.
First Quarter 2020 Financial
Summary
- Cash and cash equivalents were $14.7 million as of
March 31, 2020, compared with $2.8 million as of
December 31, 2019. The increase in cash and cash
equivalents was primarily due to the completion of a public
offering in February 2020, whereby the Company raised gross
proceeds of $15.5 million.
- Cash used in operations in the first quarter of 2020 was
$2.9 million, compared with cash used in operations of
$2.1 million in the same period of the prior year.
- Net loss in the first quarter of 2020 was to $3.1 million,
or $0.11 per share, compared to a net loss of $2.8 million, or
$0.18 per share, in the same period of the prior year.
- General and administrative expenses in the first quarter of
2020 were $1.6 million, compared to $1.3 million in the
same period of the prior year. This increase is primarily due
to strengthening the management team.
- Research and development expenses in the first quarter of 2020
were $569 thousand, compared to $663 thousand in the same
period of the prior year. The decrease was primarily due to
lower field trial costs.
About AquaBounty Technologies,
Inc.
AquaBounty Technologies, Inc. (NASDAQ: AQB) is a
commercial aquaculture company focused on improving efficiency,
sustainability, and profitability, leveraging decades of
biotechnology expertise to ensure the availability of high-quality
seafood to meet global consumer demand. By 2016, both the
U.S. Food and Drug Administration and Health Canada approved the
Company’s AquAdvantage salmon as the first and only bioengineered
animal protein for human consumption.
The Company’s AquAdvantage fish program is based
upon a single, specific molecular modification that results in more
rapid growth in early development, resulting in a 70 percent
increase in annual production output for AquAdvantage versus
conventional Atlantic salmon. With aquaculture facilities
located in Indiana and on Prince Edward Island, AquaBounty is
raising its disease-free, antibiotic-free salmon in land-based
Recirculating Aquaculture Systems, resulting in a reduced carbon
footprint and no risk of pollution to marine ecosystems as compared
to traditional sea-cage farming. For more information, please
visit www.aquabounty.com.
Forward-Looking
Statements
This press release contains forward-looking
statements within the meaning of Section 27A of the Securities Act
of 1933 and Section 21E of the Securities Exchange Act of 1934,
each as amended. All statements other than statements of historical
fact contained in this press release are forward-looking
statements, including statements regarding the potential for and
timing of the harvesting and sale of our fish from our production
farms, future revenues, the development of new farms and the
selection of related service providers, the development of a
shareholder communication program, and arrangements with potential
customers, distributors, and processors; the effectiveness of our
COVID-19 response and the potential impact of the pandemic; the
sufficiency of prior capital raises; our scale and volume of
production; and the potential for fish diseases, use of
antibiotics, pollution of the marine environment, annual production
increases, demonstration of aquaculture expertise, reduction in
carbon footprint, development of new technologies, and our
geographic expansion. Forward-looking statements may be identified
with words such as “will,” “may,” “expect,” “plan,” “anticipate,”
“upcoming,” “believe,” “estimate,” or similar terminology, and the
negative of these terms. Forward-looking statements are not
promises or guarantees of future performance and are subject to a
variety of risks and uncertainties, many of which are beyond our
control, which could cause actual results to differ materially from
those contemplated in these forward-looking statements.
Forward-looking statements speak only as of the date hereof, and,
except as required by law, we undertake no obligation to update or
revise these forward-looking statements. For additional information
regarding these and other risks faced by us, please refer to our
public filings with the Securities and Exchange Commission (“SEC”),
available on the Investors section of our website at
www.aquabounty.com and on the SEC’s website at www.sec.gov.
Company Contact:
AquaBounty TechnologiesDave ConleyCorporate Communications(613)
294-3078
Investor Relations:
Greg FalesnikManaging DirectorMZ Group - MZ North America(949)
385-6449AQB@mzgroup.us
AquaBounty Technologies,
Inc.Consolidated Balance
Sheets(Unaudited)
|
As of |
|
March 31, |
|
December 31, |
|
2020 |
|
2019 |
Assets |
|
|
|
|
|
Current assets: |
|
|
|
|
|
Cash and cash equivalents |
$ |
14,749,746 |
|
|
$ |
2,798,744 |
|
Other receivables |
82,873 |
|
|
55,198 |
|
Inventory |
1,833,957 |
|
|
1,232,049 |
|
Prepaid expenses and other current assets |
364,700 |
|
|
391,162 |
|
Total current assets |
17,031,276 |
|
|
4,477,153 |
|
|
|
|
|
|
|
Property, plant and equipment,
net |
23,708,229 |
|
|
25,065,836 |
|
Right of use assets, net |
385,519 |
|
|
399,477 |
|
Definite-lived intangible
assets, net |
154,162 |
|
|
157,588 |
|
Indefinite-lived intangible
assets |
101,661 |
|
|
101,661 |
|
Other
assets |
33,331 |
|
|
32,024 |
|
Total
assets |
$ |
41,414,178 |
|
|
$ |
30,233,739 |
|
|
|
|
|
|
|
Liabilities and
stockholders’ equity |
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
Accounts payable and accrued liabilities |
$ |
1,834,685 |
|
|
$ |
1,462,809 |
|
Other current liabilities |
62,939 |
|
|
62,286 |
|
Current debt |
150,730 |
|
|
163,155 |
|
Total current liabilities |
2,048,354 |
|
|
1,688,250 |
|
|
|
|
|
|
|
Long-term lease
obligations |
336,997 |
|
|
352,808 |
|
Long-term debt |
4,032,744 |
|
|
4,432,052 |
|
Total liabilities |
6,418,095 |
|
|
6,473,110 |
|
|
|
|
|
|
|
Commitments and
contingencies |
|
|
|
|
|
|
|
|
|
|
|
Stockholders’ equity: |
|
|
|
|
|
Common stock, $0.001 par value, 50,000,000 shares authorized;
32,085,684 (2019: 21,635,365) shares outstanding |
32,086 |
|
|
21,635 |
|
Additional paid-in capital |
170,957,969 |
|
|
156,241,363 |
|
Accumulated other comprehensive loss |
(742,145 |
) |
|
(360,160 |
) |
Accumulated deficit |
(135,251,827 |
) |
|
(132,142,209 |
) |
Total
stockholders’ equity |
34,996,083 |
|
|
23,760,629 |
|
|
|
|
|
|
|
Total
liabilities and stockholders’ equity |
$ |
41,414,178 |
|
|
$ |
30,233,739 |
|
|
|
|
|
|
|
|
|
AquaBounty Technologies,
Inc.Consolidated Statements of Operations and
Comprehensive
Loss(Unaudited)
|
Three Months Ended March 31, |
|
2020 |
|
|
2019 |
|
|
|
|
|
|
Revenues |
|
|
|
|
|
Product revenues |
$ |
6,753 |
|
|
$ |
97,885 |
|
|
|
|
|
|
|
Costs and
expenses |
|
|
|
|
|
Production costs |
841,434 |
|
|
862,255 |
|
Sales and marketing |
50,788 |
|
|
71,991 |
|
Research and development |
568,762 |
|
|
663,481 |
|
General and administrative |
1,637,190 |
|
|
1,255,851 |
|
Total costs and expenses |
3,098,174 |
|
|
2,853,578 |
|
|
|
|
|
|
|
Operating
loss |
(3,091,421 |
) |
|
(2,755,693 |
) |
|
|
|
|
|
|
Other income
(expense) |
|
|
|
|
|
Interest expense |
(17,045 |
) |
|
(13,338 |
) |
Other income (expense), net |
(1,152 |
) |
|
5,100 |
|
Total other income (expense) |
(18,197 |
) |
|
(8,238 |
) |
|
|
|
|
|
|
Net loss |
$ |
(3,109,618 |
) |
|
$ |
(2,763,931 |
) |
|
|
|
|
|
|
Other comprehensive
income (loss): |
|
|
|
|
|
Foreign currency translation gain (loss) |
(381,985 |
) |
|
87,551 |
|
Total other comprehensive income (loss) |
(381,985 |
) |
|
87,551 |
|
|
|
|
|
|
|
Comprehensive loss |
$ |
(3,491,603 |
) |
|
$ |
(2,676,380 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted net loss per
share |
$ |
(0.11 |
) |
|
$ |
(0.18 |
) |
Weighted average number of
common shares - |
|
|
|
|
|
basic and diluted |
27,116,754 |
|
|
15,687,681 |
|
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